Bank Mergers Face Tougher, Slower Process Under OCC Proposal

Bank Mergers Face Tougher, Slower Process Under OCC Proposal

January 29, 2024, Bloomberg

Randy Benjenk’s commentary was included in a Bloomberg article exploring a new proposal by the U.S. Office of the Comptroller of the Currency (OCC) to remove a decades-old requirement that certain merger applications get automatic approval on the 15th day after the close of the public comment period if the OCC fails to act by that deadline.

Randy analyzed the current merger application process and added that “approvals are already challenging, and the OCC proposal will raise concern that the process will get harder.”

Speaking on the current M&A environment in light of the OCC move, Randy said “there are plenty of safe and sound acquisitions that benefit communities but fit the fact patterns that the OCC is flagging. The OCC is already receiving fewer and fewer merger applications each year, and the policy statement could result in that trend continuing.”